High quality baseline financial resilience data is essential in helping the FCA to understand the risk of firm failure and risks across the financial services sector, improving its ability to protect consumers, ensure market integrity and ultimately, helping reduce harm from firm failure. The current approach of collecting the data through ad hoc surveys places significant administrative burden on firms. Therefore, the FCA is rationalising and standardising this data collection by replacing its Financial Resilience Survey with a new financial resilience regulatory return. This will be referred to as ‘FIN073 – Baseline Financial Resilience Regulatory Report’.
The FCA Feedback to CP22/19 and final rules have been published in Policy Statement PS23/3, with firms that will be brought into scope of FIN073 needing to be prepared to submit the return when it is due, from January 2024. Firms will receive an automated reminder via RegData when the return is available for submission.
It should be noted that the FCA still require firms to complete the Financial Resilience Survey when requested to do so, until the new return comes into force in January 2024.
The FCA is also consulting simultaneously on changing the scope of FIN073 to include full permission consumer credit firms. These firms are currently excluded from the rules considering that they are captured under the definition of Credit Brokers.
The FCA will publish its final position in relation to the scope of FIN073 in Summer 2023, following the closure of CP23/9 in June 2023.
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